Poalim Equity and Reality Partners invest about 50 million euros in a student housing fund in Europe

Poalim Equity, the investment arm of Bank Hapoalim, continues to prioritize international projects. This morning, the company announced a joint investment with Reality Partners, a real estate investment firm within the Reality fund group, in the European investment fund Alea Living One.

The two entities will together acquire approximately 30% of the shares in the management company of the Alea funds and will act as anchor investors, committing about 50 million euros to the company's new investment fund, Alea Living One.

In March, Reality announced the establishment of a vehicle designed to acquire minority stakes in the management companies of international real estate funds, allocating 200 million shekels for such investments. The first deal involved acquiring 30% of the management company of the Prisma Investment fund, founded by Itzik Nahum. The current investment also involves a fund with Israeli partners.

Alea was founded in 2018 by Roi Shoaf, Pedro Antunes, and Roy Ashkelira. The company specializes in the development, construction, management, and operation of institutional student housing and alternative residential complexes. This sector is considered a high-growth area in the European real estate market.

Currently, Alea is advancing the construction of approximately 2,500 housing units in Lisbon and Porto, while expanding its operations into Spain and Poland. The fund, managed by Liat Hazut, aims to raise between 150 and 200 million euros. It has already completed a first closing of about 60 million euros with the participation of the founders and anchor investors.

In these three countries, only up to 10% of students currently live in dormitories. Both entities estimate that by 2030, there will be a shortage of 600,000 beds for students in these regions.